Bill Text: TX HB2425 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to a prohibition on governmental contracts with Chinese companies.
Spectrum: Partisan Bill (Republican 15-0)
Status: (Introduced - Dead) 2023-03-13 - Referred to State Affairs [HB2425 Detail]
Download: Texas-2023-HB2425-Introduced.html
88R6780 LRM-D | ||
By: Isaac | H.B. No. 2425 |
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relating to a prohibition on governmental contracts with Chinese | ||
companies. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subtitle F, Title 10, Government Code, is | ||
amended by adding Chapter 2278 to read as follows: | ||
CHAPTER 2278. PROHIBITION ON CONTRACTS WITH CHINESE COMPANIES | ||
Sec. 2278.001. DEFINITIONS. In this chapter: | ||
(1) "Chinese company" means a company that is | ||
headquartered in China or is a wholly owned subsidiary or | ||
majority-owned subsidiary of a company headquartered in China, | ||
regardless of whether: | ||
(A) the company's or its parent company's | ||
securities are publicly traded; or | ||
(B) the company or its parent company is listed | ||
as a Chinese company on a public stock exchange. | ||
(2) "Governmental entity" means a state agency or | ||
political subdivision of this state. | ||
Sec. 2278.002. PROVISION REQUIRED IN CONTRACT. A | ||
governmental entity may not enter into a contract with a company for | ||
goods or services unless the contract contains a written | ||
verification from the company that it is not a Chinese company. | ||
SECTION 2. Section 2278.002, Government Code, as added by | ||
this Act, applies only to a contract entered into on or after | ||
January 1, 2024. A contract entered into before that date is | ||
governed by the law in effect on the date the contract was entered | ||
into, and the former law is continued in effect for that purpose. | ||
SECTION 3. This Act takes effect September 1, 2023. |